By Eva Dou
BEIJING-- Qualcomm Inc. struck a deal to help China's biggest
semiconductor foundry upgrade its technology, as the U.S. chip
maker seeks to improve its standing in the country following an
antitrust investigation.
Chinese foundry Semiconductor Manufacturing International Corp.
said Tuesday it will form a joint venture company with Qualcomm,
Huawei Technologies Co. and Belgian chip research center Imec to
develop advanced 14-nanometer chips.
Beijing is pouring billions into its semiconductor sector, as it
seeks to decrease its dependence on U.S. technology for economic
and security reasons. U.S. suppliers have sought to keep their
place in the major market by forging partnerships with local
companies.
Qualcomm and SMIC collaborated last year on the production of
28-nanometer chips. The smaller the number, the more advanced the
chip.
Chinese antitrust authorities investigated Qualcomm last year
for antitrust practices. The San Diego company agreed in February
to settle for a $975 million fine and to reduce its royalty rates
on handsets sold in China.
Other companies have struck partnerships in China in recent
months as a way of easing official skepticism of foreign firms.
Tsinghua Unigroup Ltd. in May said it would buy a 51% stake in
Hewlett-Packard Co.'s China networking gear subsidiary H3C.
Write to Eva Dou at eva.dou@wsj.com
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